The Markit iTraxx Japan index increased 2 basis points to
109.5 as of 9:21 a.m. in Tokyo, according to Citigroup Inc.
prices. The gauge rose for five consecutive weeks through June
14, according to CMA, which is owned by McGraw-Hill Cos. and
compiles prices quoted by dealers in the privately negotiated
market.

The Markit iTraxx Australia index declined 3 basis points
to 129 basis points as of 10:20 a.m. in Sydney, according to
National Australia Bank Ltd. prices. The measure is set for its
second straight daily fall, CMA prices show.

Credit-default swap indexes are benchmarks for insuring
bonds against default and traders use them to speculate on
credit quality. A drop signals improving perceptions of
creditworthiness, while an increase suggests the opposite.

The swap contracts pay the buyer face value in exchange for
the underlying securities if a borrower fails to meet its debt
agreements.